Partners hit hot hole at Lac Montbray

Drilling by joint venture partners Noranda (NRD-T) and Alexis Minerals (AMC-V) has turned up a new base metal discovery on the Lac Montbray property near Rouyn-Noranda, Que.

The discovery hole, no. 9, yielded 5.2 metres (beginning 110 metres below surface) running 5.6% copper, 1.7% zinc, 0.3 gram gold and 17.6 grams silver per tonne. The hole was designed to test a strong off-hole anomaly encountered in the drill program’s first hole 50 metres to the west. That hole encountered a volcanogenic massive sulphide zone with only anomalous metal values. The holes were originally designed to test airborne Megatem anomalies.

Hole no. 9 cut a zone of massive sulphide mineralization comprising 70% pyrite, 20% chalcopyrite, 5% sphalerite and chloritic host rock and quartz. Alexis says the mineralization marks the contact between overlying andesites and underlying felsic volcanic rocks. The zone remains open to the east and at depth.

Assay results from a wider zone of sulphide-filled breccia and stringer mineralization within the footwall to the massive mineralization are pending. The area has seen little previous work, and has not been drilled; a third hole is currently underway 50 meters east of, and down dip of, the discovery hole.

Lac Montbray property, 25 km west of Noranda’s Horne smelter, is part of an 800-sq.-km. group of properties in which Alexis is earning a half-interest from Noranda. The two currently have six surface diamond drills exploring advanced base metal and gold targets. Noranda operates the base metal exploration while Alexis handles the gold program. The land package includes mineral rights over the past-producing Horne and Quemont, Amulet, Gallen, Ansil, Newbec, East Waite and Old Waite mines.

Under the deal, Noranda and Alexis each have a first right to boost to 65% their stake in any base metal or gold discovery, respectively. To do so, the party would have to solely fund a bankable feasibility up to $20 million. If that first is not exercised, the increased interest would be available to the other partner.

News of the discovery sent shares in Alexis soaring 13, or more than 35%, to 50 in early trading in Vancouver on Nov. 12; Noranda shares were off a nickel at $20.80 in Toronto.

In other news, Noranda says exclusive negotiations regarding parastatal enterprise China Minmetals’ acquisition of Noranda continue. The deal’s price tag is expected to represent a small premium to Noranda’s share price on Sep. 24, the day of the deal’s announcement; the shares ended off 44 at $22.14 in Toronto on that date.

Minmetals’ offer is principally cash, and includes the distribution to shareholders of certain Noranda holdings, principally consisting of its aluminum business.